FURTHER READINGS IN MACROECONOMICS
This page contains suggested further readings and links associated with the textbook MACROECONOMICS by Nils Gottfries. Nils Gottfries bears all responsibility for the contents of this page but cannot be held responsible for third-party material contained on the linked pages. The page is under construction and more references will be added.
Gapminder on-line data interactive tool to see differences in income, growth, Health.
Marc Fleurbaey, ‘Beyond GDP: The Quest for a Measure of Social Welfare’, Journal of Economic Literature, 47 (2009), 1029-1073.
Charles I. Jones and Peter J. Klenow, 'Beyond GDP: Welfare Across Countries and overTime', (2011).
2. PRODUCTION, PRICES, AND THE DISTRIBUTION OF INCOME
3. INTEREST RATES AND INVESTMENT
4. CONSUMPTION AND THE NATURAL RATE OF INTEREST
Christopher D. Carroll, A Theory of the Consumption Function, With and Without Liquidity Constraints, Journal of Economic Perspectives 15 (2001), 23-45.
J. S. Chadha and N. H. Dimsdale, A Long View of Real Interest Rates, Oxford Review of Economic Policy, 15 (1999), 17-45.
5. CAPITAL ACCUMULATION AND GROWTH
David N. Weil, Economic Growth (Boston: Pearson 2012).
Gregory Mankiw, ‘The Growth of Nations’, Brookings Papers on Economic Activity, 1 (1995), 275-236.
Mancur Olson, 'Big bills left on the sidewalk: Why some countries are rich and others poor', Journal of Economic Perspectives, 10 (1996), 3-24.
Xavier Sala-i-Martin, ‘The World Distribution of Income: Falling Poverty and… Convergence, Period’, Quarterly Journal of Economics, 121 (2006), 351-397.
Pritchett, Lant, ‘Divergence,Big Time’, Journal of Economic Perspectives, American Economic Association, 11 (1997), 3-17.
Robert E. Lucas, Jr., ‘The Industrial Revolution: Past and Future’, 2003 Annual Report Essay, The Federal Reserve Bank of Minneapolis, 2004.
William Easterly, The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics, Cambridge: MIT Press, 2001.
Worldometer Population Statistics
John Fernald and Shanthi Ramnath, 'InformationTechnology and the U.S. Productivity Acceleration', Chicago Fed Letter 193 (2003).
Robert J. Gordon, 'Does the "NewEconomy" Measure up to the Great Inventions of the Past?', NBER Working Paper (2000).
Robert J. Gordon, 'Five Puzzles in the Behavior of Productivity, Investment, and Innovation', NBER Working Paper No. 10660 (2004).
Andreas Hornstein and Per Krusell, 'Can technology improvements cause ProductivitySlowdowns?', NBER Macroeconomics Annual 11 (1996), 209-259.
OECD Science, Technology and Industry Scoreboard
Adam Smith, Wealth of Nations, Introduction and Chapters 1-3
Michele Boldrin and David Levin, Against Intellectual Monopoly,
Landes, David S., The Wealth and Poverty of Nations, Chapter 3 –Why Europe?
Gregory Clark, 'Why Isn't the Whole World Developed? Lessons from the Cotton Mills', The Journal of Economic History, 47 (1987), 141-173.
Galdón-Sánchez, José E. and Schmitz, James A. Jr. ‘CompetitivePressure and Labor Productivity: World Iron Ore Markets in the 1980s’, American Economic Review, 92 (2002), 1222-1235.
Ronald A. Wirtz, 'Miningfor Missing Links', Federal Reserve Bank of Minneapolis, September 2003
World Development Report, “The Report at a Glance – Density, Distance, and Division,” Reshaping Economic Geography, Washington, DC, The World Bank (2009), xxi-xxiii
World Bank, Global Purchasing Power Paritiesand Real Expenditures, Washington, DC, The World Bank (2008), 1-27.
Dale W. Jorgenson and Khuong Vu, 'Growth Accounting within the InternationalComparison Program, ICP Bulletin, 1 (2009), 3-19.
Dale W. Jorgenson and Marcel P. Timmer, “Structural Change in Advanced Nations: A New Set of StylizedFacts,” Scandinavian Journal of Economics, 113 (2011), 1-29.
Bart van Ark, Mary O’ Mahony and Marcel P. Timmer, “The Productivity Gap between Europe and the United States: Trends and Causes,” Journal of Economic Perspectives, 22 (2008), 25–44.
Dale W. Jorgenson Economics of Productivity (Northampton, MA: Edward Elgar 2009), pp. ix-xxviii.
Erik Brynjolfsson and Andrew Mcafee, Race Against the Machine (Lexington, MA: Digital Frontier Press 2011).
Erik Brynjolfsson and Adam Saunders, Information Technology, Productivity, and Innovation, (Cambridge, MA: The MIT Press 2009).
Ronald D. Lee, “The Outlook for Population Growth,” Science, 333 (2011), 569-573.
Bureau of the Census, International Data BasePopulation Estimates and Projections, (Washington, D.C.: Bureau of the Census, 2009).
United Nations, World Population Prospects, New York, United Nations.
William D. Nordhaus, Climate Casino (Yale University Press 2013).
William D. Nordhaus, A Question of Balance (Yale University Press, 2008), pp. 65-115.
World Bank, “Ending Extreme Poverty”, in World Bank, End Extreme Poverty and Promote Shared Prosperity (Washington, DC: World Bank 2013), 10-17.
Martin Ravallion, “How LongWill It Take to Lift One Billion People Out of Poverty?” Washington, DC, The World Bank, Policy Research Working Paper No. 6325, (2013).
Shaohua Chen and Martin Ravallion, “The Developing World isPoorer Than We Thought, But No Less Successful in the Fight Against Poverty,” Policy Research Working Paper 4703 (Washington, DC: The World Bank 2008).
6. WAGE SETTING AND UNEMPLOYMENT
Milton Friedman, ‘The role of monetary policy’, American Economic Review, 58 (1968), 1–17.
Richard Layard, Stephen Nickell, and Richard Jackman, Unemployment (Oxford: Oxford University Press, 1991, reprinted with new introduction 2005).
Charles R. Bean, ‘European unemployment: a survey’, Journal of Economic Literature, 32 (1994), 573–619.
Olivier J. Blanchard, ‘Wage bargaining and unemployment persistence’, Journal of Money, Credit and Banking, 23 (1991), 277–292.
Pierre Cahuc and André Zylberberg, Labor Economics (Cambridge, MA: The MIT Press, 2004).
Stephen Nickell and Richard Layard, ‘Labour market institutions and economic performance’, in Orley Ashenfelter and David Card (eds.), Handbook of Labor Economics, vol. 3 (Amsterdam: Elsevier, 1999).
Bertil Holmlund, 1998, ‘Unemployment insurance in theory and practice’, Scandinavian Journal of Economics, 100 (1998), 113–141.
Assar Lindbeck and Dennis Snower, ‘Insiders versus outsiders’, Journal of Economic Perspectives, 15 (2001), 165–188.
Ulf Rinne and Klaus F Zimmermann, ‘Another economic miracle? The German labor market and the Great Recession’, IZA Journal of Labor Policy 2012.
George J. Borjas, Labor Economics (Boston: McGraw-Hill, 2012).
7. MONEY AND INFLATION IN THE LONG RUN
8. THE INTEREST RATE AND PRODUCTION IN THE SHORT RUN
John Maynard Keynes, General Theory of Employment, Interest, and Money (London: Macmillan, 1936, reprinted many times).
9. ECONOMIC ACTIVITY AND INFLATION IN THE SHORT RUN
John Taylor, ‘Staggered price and wage setting in macroeconomics’, in Michael Woodford and John Taylor (eds.), Handbook of Monetary Economics, 1B (Amsterdam: North-Holland, 1999).
Luis Álvarez et al. ‘Sticky prices in the Euro area: A summary of new micro evidence, Journal of the European Economic Association, 4 (2006), 575–584.
Peter Klenow and Benjamin Malin, Benjamin, ‘Microeconomic Evidence on Price-setting’, NBER working paper 15826, Cambridge, MA, 2010.
William Dickens, Lorenz Götte, Erika Groshen, Steinar Holden, Julian Messina, Mark Schweitzer, Jarkko Turunen, and Melanie Ward-Warmedinger, ‘How wages change: micro evidence from the International Wage Flexibility Project’, Journal of Economic Perspectives, 21 (2007), 195–214.
A. W. H. Phillips, ‘The relationship between unemployment and the rate of change of money wages in the United Kingdom 1861–1957’, Economica, 25 (1958), 283–299.
For more advanced presentations of sticky-price models, see:
Richard Clarida, Jordi Gali, and Mark Gertler, ‘The science of monetary policy: a new Keynesian perspective’, Journal of Economic Literature, 37 (1999), 1661–1707.
Jordi Gali, Monetary Policy, Inflation, and the Business Cycle (Princeton: Princeton University Press, 2008).
10. MONETARY POLICY
Recently, the Federal Reserve adopted an explicit inflation target of 2 percent (comment by Reuters)
ECB The Implementation of Monetary Policy in the Euro Area
Bank of England, A Framework for the Bank of England’s Operations in the Sterling Money Markets
Taylor, John B. 1993, Discretion Versus Policy Rules in Practice, Carnegie-Rochester Series on Public Policy, 39, 195-214.
Mervyn King, “TwentyYears of Inflation Targeting,” Stamp Memorial Lecture, London School of Economics, (2012).
Central bank websites contain press releases and reports about the outlook for the economy and monetary policy, descriptions of the goals and procedures of monetary policy, statistics about interest rates, exchange rates etc.
The Bank for International Settlements(BIS) fosters international cooperation between central banks and to act as a bank for central banks
11. FISCAL POLICY
Alan Auerbach, William Gale, and Benjamin Harris, ‘Activist fiscal policy’, Journal of Economic Perspectives, 24 (2010), 141–164.
Roel Beetsma, A Survey of the Effects of Discretionary Fiscal Policy, Report for the Swedish Fiscal Policy Council 2008/2.
Douglas Bernheim, ‘Ricardian equivalence: an evaluation of theories and evidence’, NBER Macroeconomics Annual, 2 (1987), 263–304.
Olivier Blanchard and Roberto Perotti, ‘An empirical characterization of the dynamic effects of changes in government spending and taxes on output’, Quarterly Journal of Economics, 117 (2002), 1329–1368.
Christina Romer and David Romer, ‘The macroeconomic effects of tax changes: new estimates based on a new measure of fiscal shocks’, American Economic Review, 100 (2010), 763–801
Jordi Gali and Roberto Perotti, ‘Fiscal policy and monetary integration in Europe’, Economic Policy, 37 (2003), 533–572.
Lawrence Christiano, Martin Eichenbaum, and Sergio Rebelo, “When Is the Government Spending Multiplier Large?” Journal of Political Economy, 119 (2011), 78-83, 109-121.
John F. Cogan and John B. Taylor, “What the Government Purchases Actually Multipliedin the 2009 Stimulus Package,” Ch. 5 in Lee E. Ohanian, John B. Taylor, and Ian J. Wright, eds., Government Policies and the Delayed Economic Recovery (Stanford, CA: Hoover Institution Press, 2012), 85-109.
International Monetary Fund “Medium-Term Fiscal Adjustment in an Uncertain World,” Ch. 2, in Fiscal Monitor (Washington, DC: 2013).
International Monetary Fund, “Fiscal Deficits and Debts: Developments and Outlook,” Ch. 1, and “What Failed and What Worked in Past Attempts at Fiscal Adjustment, App. 4, in Fiscal Monitor (Washington, DC: 2011), 1-28 and 87-98.
Congressional Budget Office, The Long Term Budget Outlook (Washington, DC: Congressional Budget Office, 2013).
12. EXPORTS, IMPORTS, AND INTERNATIONAL FINANCIAL MARKETS
Paul Krugman and Maurice Obstfeld, International Economics: Theory and Policy, 8th edn (Boston: Pearson, 2009).
IMF Balance of Payments Textbook
World Trade Organization, “Transformational Factors Shaping International Trade,” Chapter 2 in World Trade Organization, The Future of Trade: The Challenges of Convergence,” (2013), 19-26.
Marcel P. Timmer, Bart Los, Robert Stehrer and Gaaitzen J. de Vries, “Re-ThinkingCompetitiveness: The Global Value Chain Revolution” (2013)
Marcel P. Timmer, Bart Los, Robert Stehrer and Gaaitzen J. de Vries, “Fragmentation,Incomes, and Jobs: An Analysis of European Competitiveness,” Economic Policy, (2013).
Rudolf Brems and Robert C. Johnson, “Value-Added Exchange Rates,” (2012)
World Trade Organization, “Globalization and Trade,” Ch. IIA in World Trade Report 2008 (Geneva: World Trade Organization 2008), 15-26.
Richard Baldwin, ed., The Great Trade Collapse:Causes, Consequences, and Prospects (London: Centre for Economic Policy Research 2009).
World Trade Organization, World Trade Report, Geneva, World Trade Organization.
13. THE OPEN ECONOMY IN THE LONG RUN
Martin Feldstein and Charles Horioka, ‘Saving and international capital flows’, Economic Journal, 90 (1980), 314–329.
Chadha, J. S. and Dimsdale, N. H., 1999, A Long View of Real Interest Rates, Oxford Review of Economic Policy, 15, 17-45.
14. THE OPEN ECONOMY IN THE SHORT RUN
15. EXCHANGE RATE SYSTEMS AND MONETARY UNION
Barry Eichengreen, Globalizing Capital: A History of the International Monetary System (Princeton: Princeton University Press, 1996).
Tamim Bayoumi, Barry Eichengreen, and Mark Taylor, Economic Perspectives on the Classical Gold Standard (New York: Cambridge University Press, 1996).
Francesco Giavazzi and Alberto Giovannini, Limiting Exchange Rate Flexibility: The European Monetary System (Cambridge, MA: The MIT Press, 1989).
Maurice Obstfeld and Kenneth Rogoff, ‘The mirage of fixed exchange rates’, Journal of Economic Perspectives, 4 (1995), 73–96.
EMU: A Swedish Perspective by Lars Calmfors, Harry Flam, Nils Gottfries, Nils, Matlary Haaland Jerneck Janne, Lindahl Magnus, Rutger, Nordh Berntsson, Rabinowicz Christina, and Anders Vredin (Amsterdam: Kluwer, 1997).
EU Commission: ‘One Market, one money – An evaluation of the potential Costs and Benefits of Forming an Economic and Monetary Union’, European Economy, 44, Brussels
Richard Baldwin and Charles Wyplosz, The Economics of European Integration, (London: McGraw-Hill, 2012).
Robert Mundell, ‘A theory of optimum currrency areas’, American Economic Review, 51 (1961), 657–665.
EMU at Ten: Should Denmark, Sweden, and the UK Join? by Harry Flam, Antonio Fatas, Steinar Holden, Tullio Jappelli, Ilian Mihov, Marco Pagano, and Charles Wyploszis (Stockholm: SNS, 2009).
EEAG report on the European Economy, which is published annually by CESifo
Franklin Allen, Elena Carletti, and Giancarlo Corsetti, eds., Life within the Eurozone with or without sovereign default, European University Institute and Wharton Financial Institutions Center, 2001:
Two economists who have written extensively about the history of the exchange rate system are Michael D. Bordo and Barry Eichengreen
International Monetary Fund, “Acute Risks Reduced: Actions Needed to Entrench FinancialStability,” Chapter 1 in Global Financial Stability Report (Washington, DC IMF 2013), 1-23.
Directorate General for Economic and Financial Affairs, EconomicCrisis in Europe: Causes, Consequences and Responses (Brussels: European Commission 2009), 1-22.
Richard Baldwin and Daniel Gros, “Introduction: The Euro in Crisis: What to Do?” in Richard Baldwin, Daniel Gros, and Luc Laeven, eds., Completing the Eurozone Rescue: What More Need to Be Done? (London: Centre for Economic Policy Research, 2010), 1-24.
16. BUSINESS CYCLES
Robert Lucas, ‘Understanding business cycles’, Carnegie-Rochester Series on Public Policy, 5 (1977), 7-29.
17. INSTITUTIONS AND ECONOMIC POLICY
Allan Drazen, Political Economy in Macroeconomics (Princeton: Princeton University Press, 2001).
Torsten Person and Guido Tabellini, Political Economics: Explaining Economic Policy (Cambridge, MA: The MIT Press, 2002).
L. Calmfors, ‘Fiscal Policy Coordination in Europe, report for the European Parliament’ (2010).
Stefania Fabrizio and Ashoka Mody, ‘Can Budget Institutions Counteract Political Indiscipline?’, Economic Policy, 21 (2006), 690–739.
Lars Calmfors and Simon Wren-Lewis, ‘What Should Fiscal Councils Do?’, CESifo working paper 3382 (2011).
For information about fiscal councils, see the homepage created by Simon Wren-Lewis
John B. Taylor, “The Cycle of Rules and Discretion in Economic Policy,” National Affairs, No. 7, (Spring, 2011), 55-65.
18. FINANCIAL MARKETS
Robert Shiller, 1981, ‘Do stock prices move too much to be justified by subsequent changes in dividends?’, American Economic Review, 71 (1981), 421–436.
Classic reviews of historical experiences:
Charles P. Kindleberger, Manias, Paniks, and Crashes, 3rd edition, John Wiley and Sons, 1996.
Carmen Reinhart and Kenneth Rogoff, This Time Is Different: Eight Centuries of Financial Folly, (Princeton, NJ: Princeton University Press, 2009).
For more books about financial crises, see ‘Reading About the Financial Crisis: A21-Book Review’ by Andrew W. Lo
Analyses of the recent financial crisis are found in recent issues of Journal of Economic Perspectives and the CESifo EEAG Report on the European Economy
Same thing happened in Finland and Sweden 20 years ago:
Lars Jonung, Jaakko Kiander, and Pentti Vartia, eds., The Great Financial Crisis in Finland and Sweden: The Nordic Experience of Financial Liberalization (Cheltenham: Edward Elgar Publishing, 2009).
Jean-Charles Rochet, ‘Regulating Systemic Institutions’, Finish Economic Papers, 22 (2009), 35-46
The Squam Lake Group is a non-partisan, non-affiliated group of academics who offer guidance on the reform of financial regulation:
Martin Hellwig, ‘Capital Regulation after the Crisis: Business as Usual?’ and more on Banking and Financial Stability
Paul Krugman, End This Depression Now, (New York: Norton: 2012)
On the liquidity trap:
Paul R. Krugman, 'It’s Back: Japan’s Slump and the Return of the Liquidity Trap’, Brookings Papers on Economic Activity, 1998:2, 137–205.
Lars E. O. Svensson, ’Escaping from a liquidity trap and deflation: the foolproof way and others’, Journal of Economic Perspectives, 17 (2003), 145–166.
Chairman Ben S. Bernanke on the Federal Reserve and the financial crisis
Ben S. Bernanke, "Causes of the Recent Financial and Economic Crisis” (Washington, DC: Financial Crisis Inquiry Commission 2010).
John B. Taylor, Getting Off Track (Stanford, CA: Hoover Institution Press 2009), 31-45.
Peter Wallison, “Dissent from the Majority Report of the Financial Crisis InquiryCommission: Introduction and Summary,” (Washington: American Enterprise Institute 2011).
Ben S. Bernanke,”Monetary Policy since the Onset of the Crisis,” Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming, August 2012.
John B. Taylor, “Remarks on Monetary Policy Challenges,” Bank of England Conference on “Challenges to Central Banks in the 21st Century” (2012).
Janet L. Yellen, “Interconnectedness and Systemic Risk”, American Economic Association/American Finance Association Joint Luncheon, San Diego, California, (2013).
International Monetary Fund, “The Reform Agenda: An Interim Report on Progress Toward a SaferFinancial System,” Chapter 3 in Global Financial Stability Report (Washington, DC: IMF: 2012), 75-92.
Carmen M Reinhart and Kenneth S. Rogoff This Time Is Different: Eight Centuries of Financial Folly, (Princeton: Princeton University Press 2009).
Ben S. Bernanke, “Monetary Policy and the Housing Bubble,” Annual Meeting of the American Economic Association, Atlanta, Georgia, January 2010.
John B. Taylor, “The Fed and the Crisis: A Reply to Ben Bernanke,” Wall Street Journal, January 2010.
John B. Taylor, “Macroeconomic Lessons from the Great Deviation,” 25th NBER Macro Annual Meeting, (2010).
Emma Murphy and Stephen Senior, “Changes to the Bank of England,” Quarterly Bulletin, (2013) Q1, 20-28.
MORE ADVANCED BOOKS IN MACROECONOMICS
By reading these books you can get a deeper understanding of the different topics.
David Romer, Advanced Macroeconomics, 4thedition, (McGraw-Hill Irwin, New York, 2012).
Peter Birch Sorensen and Hans Jorgen Whitta-Jacobsen, Introducing Advanced Macroeconomics, 2nd edition, (McGraw-Hill, London, 2010)
JOURNALS/REPORTS WITH APPLIED AND POLICY ARTICLES
A good place to start finding the relevant literature on a topic.
Journal of Economic Perspectives
Oxford Review of Economic Policy
Brookings Papers on Economic Activity
CESifo Economic Advisory Group (EEAG) Report
FORECASTS/SURVEYS
RESEARCH PAPERS
CENTRAL BANK WEB SITES
These sites contain press releases and reports about the outlook for the economy and monetary policy, descriptions of the goals and procedures of monetary policy, statistics about interest rates, exchange rates etc.
Bank for International Settlements(BIS) fosters international cooperation between central banks and acts as a bank for central banks
INTERNATIONAL ORGANIZATIONS
ECONOMIST’S ORGANIZATIONS
USEFUL WEB SITES
STATISTICAL SOURCES
There is lots of data available but you need to have access rights to these statistical databases.
OECD Economic Outlook Database
OECD National Accounts Statistics
BLOGS
Chris Blattman Development blog
Consider the evidence (Lane Kenworthy)
Euro Area Debt Crisis (Megan Greene)
Gavyn Davies Macroeconomics (FT)
National institute of Economic research (UK)
Robert Peston (BBC)
mainlymacro (Simon Wren-Lewis)
Stephanie Flanders (BBC)